Need Help Figuring out Bank Financing.

**InsomnicBrain** · 04-24-2008 08:18 PM

Hi,

I'm going to try my best to explain this. I apologize if I leave anything out or confuse anyone. I'm opening a business and I'm getting a loan for 300k. I have to buy equipment for 100k. That only leaves me with 200k working capital. I talked to another business owner and he told me that if he he could do it over again he would have taken out another loan to buy the equipment and pay monthly for it and have that 100k as extra working capital. Which woudl leave me with 300k working capital.

I don't want to apply for another loan, is there any other way I can structure something with the bank where I would be able to pay for the 100k equipment and pay the bank monthly leaving me with 100k extra working capital? Do any of you know the banking system well or could give me advice on what I could do? I read in one of Rich Dads book where he explain how someone could build their credit buy creating a cod and then paying it off? Am I in the same kind of situation?

Thanks...Robert

**rogercbryan** · 04-24-2008 08:42 PM

If I understand right all you need is a line of credit. With that you will only be making payments on what you use. If you borrow $400K but only spend $100K then you will only be making payments on the $100K yet you will still have access to the rest of the money as needed. Unless I'm totally missing something this is a pretty simple thing to do.

**jasaunders** · 04-25-2008 07:41 AM

Yea, I really hope you didn't take a loan out of $300k, because then you're paying interest on the whole loan amount. That would be awful.

Equipment is often leased, so yes, you may potentially be able to get the bank to lease the equipment to you. Most major banks and other financial institutions have a leasing department where they will buy the equipment and lease it to you. You will want to talk to a loan officer in leasing.